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October 01, 2003

The Mental Accounting Barrier to Micropayments   (link)

psychological pressure regarding the value of the good or service purchased applied to the ratio between price and volume of product (i.e. you buy a lot, therefore the pressure is compounded and not feasible for the average consumer)
i think it's a crock (the concept itself is not, but a good implementation will avoid what this paper identifies as a key potential problem with the micropayment driven business model), but it's a good read anyways

Posted by yargevad at October 1, 2003 12:48 PM

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